Aspocomp Oulu plant shows profit

Despite the challenging market situation Aspocomp's Oulu plant stayed on black in the first quarter. Group operating result was 0.3 million euros negative.

Aspocomp net sales for the first quarter of 2009 was 3.3 million Euros compared to 5.2 million Euros during the same quarter in 2008. Operating profit before depreciation (EBITDA): EUR 0.0 million (0.4). Operating profit (EBIT): EUR -0.3 million (-0.1). Operating profit before depreciation (EBITDA) is estimated to remain positive throughout the year 2009.

"Despite the challenging market situation Aspocomp's Oulu plant stayed on black. As expected, group operating result was 0.3 million euros negative. Net sales during the same period last year was exceptionally high due to two significant one-time deliveries totaling almost one and a half million euro.

Market will be challenging throughout the year 2009. However, EBITDA is expected to remain positive during the period. Thus, also cash flow remains positive.

Due to decrease of working capital and tight cost control Group's cash flow was positive during the first quarter of 2009. Cash in hand was increased by 0.5 million euros.

Aspocomp Group's is financially stable and the company can continue as is. Alternatively, the group can be further developed through ownership arrangements."

The Aspocomp Group company Aspocomp Oulu Oy supplies PCBs for telecom, automotive and industrial electronics industries and provides PCBs for prototyping, ramp up and small series. Its service portfolio includes quick-turn deliveries, fulfilling urgent PCB needs (also in high-volume deliveries), developing and commercializing new technologies, carrying out material reports as well as close cooperation with high-volume manufacturers. Aspocomp Oulu's primary PCB technologies are HDI (High Density Interconnection), multilayer (up to 28 layers), heat-sink and Teflon- or ceramic-based PCBs.

The Aspocomp Group has a 20% stake in the joint venture Meadville Aspocomp (BVI) Holdings Limited. The financial crisis spilled over into the real economy, and consequently the demand for high-volume HDI PCBs declined substantially within the entire industry. Meadville Aspocomp (BVI) Holdings Limited reacted to the market slump by holding up the Indian plant project. The capacity and headcount of the Suzhou, China plant was adjusted in line with the reduced HDI PCBs demand. In March 2009 Meadville Aspocomp (BVI) Holdings Limited started to re-hire at the Suzhou plant step by step due to improved market demand as followed by the China 3G set up and scheduled launching in May 2009.

Aspocomp's ownership in PCB Center increased from 6.17% to 14.11 % on March 31st, 2009. The increase in ownership is a result of conversion of 48 million baht, about one million euros, loan into equity based on the agreement signed on October 16th, 2008.